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Answer Posted / srinivas annavarapu
First prepare TB based on your GL, and take cash and bank
balances from Cash book & bank book.
Prepare BRS, stock, Debtors & Creditors reconciliations and
pass the necessary adjustment entries to arrive at the
correct numbers.
Calculate the closing stock.
Identify the amounts payable (Outstanding expenses like
Electricity, Rent, tax etc.) and prepaid expenses if any.
considering all these above prepare Trading, P&L a/c and
balancesheet.
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